nep-mkt New Economics Papers
on Marketing
Issue of 2006‒08‒12
three papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior

  1. How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication? By Yue, Chengyan; Marette, Stéphan; Beghin, John C.
  2. Incentives to advertise: too strong, too weak, or just right? By L. Hunnicutt; L. Israelsen
  3. A Study of the Factors that Influence Consumer Attitudes Toward Beef Products Using the Conjoint Market Analysis Tool By Mennecke, Brian; Townsend, Anthony; Hayes, Dermot J.; Lonergan, Steven

  1. By: Yue, Chengyan; Marette, Stéphan; Beghin, John C.
    Abstract: In the context of the wine industry, we investigate producers’ choice between geographical indications and brand advertising to convey information to consumers. Producers also decide whether or not to select an effort level for improving the quality of their products. We show that if this effort level is selected, a producer will prefer to rely on brand advertising for promoting its products and setting up its own reputation. Despite allowing the cost of promotion to be shared, a geographical indication does not sufficiently reward the effort to improve quality. Finally, the selection of both instruments by producers is examined.
    Keywords: brand advertising, effort, geographical indication, GI, quality, wine.
    Date: 2006–08–01
  2. By: L. Hunnicutt; L. Israelsen
    Abstract: There is some debate about whether firms advertise too much or too little. We present a simple model to examine the incentives of a firm to advertise, and distinguish between the market expansion effects and business stealing effects of advertising. When products are homogeneous, firms advertise too little relative to the amount that would maximize total industry profits. In differentiated products markets, the possibility of stealing customers from competitors causes firms to advertise too much. Finally, we derive conditions that determine when an expansion in one firm’s advertising level increases rival advertising.
  3. By: Mennecke, Brian; Townsend, Anthony; Hayes, Dermot J.; Lonergan, Steven
    Abstract: This study utilizes an analysis technique commonly used in marketing, the conjoint method, to examine the relative utilities of a set of beef steak characteristics considered by a national sample of 1,432 U.S. consumers, as well as additional localized samples representing undergraduate students at a business college and in an animal science department. The analyses indicate that among all respondents, region of origin is by far the most important characteristic; this is followed by animal breed, traceability, the animal feed used, and beef quality. Alternatively, the cost of cut, farm ownership, the non-use of growth promoters, and whether the product is guaranteed tender were the least important factors. Results for animal science undergraduates are similar to the aggregate results except that these students emphasized beef quality at the expense of traceability and the non-use of growth promoters. Business students also emphasized region of origin but then emphasized traceability and cost. The ideal steak for the aggregate group is from a locally produced choice Angus, fed a mixture of grain and grass that is traceable to the farm or origin. If the product was not produced locally respondents indicated that their preferred production states are, in order from most to least preferred, Iowa, Texas, Nebraska, and Kansas.
    Keywords: conjoint market analysis, consumer preferences, country of origin, steak quality, traceability, transactions costs.
    Date: 2006–08–01

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